Leasing -1

Front

What is a lease?

Back

A contract to use an asset for a period of time

Front

Who owes the asset from its owner is a ......

Back

Lessee

Front

In a capital lease, which of the following is true? Ownership remains with the lessor, Lease payments are treated as expenses, Lessee must return the asset at the end of the lease.

Back

Lessee has the option to purchase the asset at a reduced price.

Front

India leasing industry is at which place in the world?

Back

14

Front

Which type of lease transfers the risks and rewards of ownership to the lessee? Options: Operating lease, Financial lease, Sale and leaseback, Leveraged lease

Back

Financial lease

Front

What is the primary characteristic of an operating lease?

Back

Short-term agreement

Front

Which lease type appears on the balance sheet as an asset and a liability?

Back

Financial lease

Front

Which accounting standard governs leases in India? Options: IAS 17, IFRS 16C, AS 19, AS 21

Back

AS 19

Front

What is the primary benefit of leasing for a lessee?

Back

Tax benefits

Front

Which of the following is an advantage of leasing for the lessor? Higher risks involved, Ownership of the asset remains with lessor, Reduced income generation, No tax benefits

Back

Ownership of the asset remains with lessor